“We’re now focusing on profitability” – Interview with Bijan Fahimi following the Tellus Group’s Q3 2024 report

– This growth is the result of several interrelated factors. The most important driver is strong organic growth of 11.2 percent, made possible by increased capacity and more efficient utilization of our existing resources. In addition, this year’s acquisitions of Matomsorg i Stockholm AB and Språkservice24 have strengthened our market position and broadened our offering in both meal services and educational resources.

Despite the increase in revenue, profitability has declined slightly. What is the reason for this?

– The slightly lower profitability is primarily linked to external factors, such as a lack of compensation for cost increases from municipalities and the effects of declining birth rates. We cannot influence these circumstances, but we believe that the trends have leveled off and that we will see a more favorable development going forward.

You have focused on diversification through new business areas such as educational resources and meal services. How do you ensure that these are effectively integrated with your existing operations?

– A centralized model for management and support makes it possible to integrate new business areas effectively. At the same time, decentralization and subject matter expertise within each business area are crucial for managing multiple operations simultaneously.

Food service operations have shown strong growth but have not yet turned a profit. What steps are you taking to achieve profitability?

– We have invested in both capacity and our own food delivery fleet, which entails initial costs but also significant long-term savings. We are already seeing an increase in the number of external customers, and our deliveries are more efficient. In 2025, we will focus on maximizing capacity utilization in our kitchens and further expanding our offering, which is expected to lead to profitability in the near future.

How does your diversification strategy affect the political risks associated with the education sector?

– The political risks affecting schools and preschools have little or no impact on our new business areas: meal services and educational resources. This diversification offsets the risks specific to the traditional education sector and makes us less vulnerable to changes in regulations and funding.

The acquisition of Vikariepoolen strengthens your position in the field of educational resources. What synergies do you see here?

– Vikariepoolen is a strong brand with a stable customer base in the public sector, which complements our native language business, where we primarily work with independent schools. Through this acquisition, we can create cross-selling opportunities and optimize the use of our resources. Together with the strong organic growth in educational resources, this business area will soon approach revenue of SEK 100 million.

You mentioned earlier a shift toward more profitable growth. Could you elaborate on that?

– In the past, our organic growth has been costly, as we have invested in opening new preschools and central kitchens. We are now shifting our focus to increasing occupancy rates at existing facilities and maximizing capacity utilization in the kitchens. This requires less investment and allows us to focus on profitability.